Profit Factor Calculator

Example: calculating profit factor

Assume your gross profit from winning trades is $5,000 and your gross loss from losing trades is $3,000.

Your profit factor is 5,000 / 3,000 = 1.67. That means your winning trades generated $1.67 for every $1 lost on losing trades.

In this example, the net profit is $2,000 before any extra costs not included in your gross profit and gross loss numbers.

How the calculation works

Profit factor compares total gross profit to total gross loss.

Profit factor = gross profit / gross loss

Net profit = gross profit - gross loss

Average win = gross profit / winning trades

Average loss = gross loss / losing trades

Average win/loss ratio = average win / average loss

For the cleanest result, use gross profit and gross loss after commissions, spread and fees if those costs are available in your trade data.

How to use this in trade review

Profit factor is useful because it shows whether your winners are large enough compared to your losers. A high win rate does not automatically mean strong performance if average losses are too large.

This is where a trading journal matters. The calculator gives you the metric. The journal shows which setups, symbols, sessions or mistakes are actually producing or destroying your profit factor.

Common questions

What is profit factor?

Profit factor is gross profit divided by gross loss. It measures how much profit your winning trades generated compared to how much your losing trades lost.

Is a profit factor above 1 good?

A profit factor above 1 means gross profit is higher than gross loss. But the quality of the result still depends on sample size, costs, drawdown and consistency.

Should I include commissions and fees?

Yes, if you want a realistic number. Trading costs can reduce profit factor, especially for scalping or high-frequency trade styles.

Can profit factor be misleading?

Yes. A small sample of trades can produce a high profit factor by chance. Profit factor should be reviewed together with drawdown, expectancy, average win/loss and the number of trades.

Is this trading advice?

No. This is an educational performance calculator. It does not tell you what to trade, when to trade, or what strategy to use.

Related trading tools

Continue the performance review with these free browser-based tools:

Expectancy Calculator
Breakeven Win Rate Calculator
R-Multiple Calculator
Risk Reward Calculator
Position Size Calculator
Pip Value Calculator
Forex Lot Size Calculator
Stop Loss Calculator
Drawdown Recovery Calculator
Daily Loss Limit Calculator

Use or link to this calculator on your website

You can link directly to this free calculator from a trading website, blog, education page, or community resource page.

Direct link

https://forgalis.com/tools/profit-factor-calculator/

Direct link HTML

Embed code

You can also embed this calculator on another website using an iframe.

Need more calculators? View all options on the free trading calculators for websites page.